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We are friends but are we family? Organizational identification and nonfamily employee turnover

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Vardaman, J. M. and Allen, David G. (2018) We are friends but are we family? Organizational identification and nonfamily employee turnover. Entrepreneurship Theory and Practice , 42 (2). pp. 290-309. doi:10.1177/1042258717749235

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Official URL: https://doi.org/10.1177/1042258717749235

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Abstract

Retaining talented employees continues to be a challenge for organizations. This challenge is especially difficult for family businesses because the family-centric priorities of these firms often disadvantage nonfamily employees and make retaining them problematic. Our study posits organizational identification, or internalizing the firm’s identity as one’s own, as a key factor in overcoming this challenge. Fostering organizational identification in family businesses is complicated by the presence of both family and nonfamily employees, and research is needed to understand the ways in which these complex social dynamics operate. To gain this understanding, we adopt a social network perspective to examine the differential impact of friendships with family and nonfamily members on nonfamily employees’ organizational identification and turnover. Results from a study of the nonfamily employees of a family-owned service company show that centrality in both family and nonfamily friendship networks reduces turnover, but that friendships with family members have a stronger effect. Results also show that various forms of embeddedness in social networks have indirect effects on turnover through organizational identification, highlighting identification’s importance for retaining nonfamily employees. Implications for turnover theory and nonfamily employees are also discussed.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: Entrepreneurship Theory and Practice
Publisher: Wiley-Blackwell Publishing Ltd.
ISSN: 1042-2587
Official Date: 1 March 2018
Dates:
DateEvent
1 March 2018Published
28 December 2017Available
15 March 2017Accepted
Volume: 42
Number: 2
Page Range: pp. 290-309
DOI: 10.1177/1042258717749235
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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